HYIP
If you want earn a quick buck really, really fast, then the concept of HYIP may appeal to you. Bear in mind, however, that HYIP programs are known to be one of the riskiest opportunities in the World Wide Web.
The Program In General
HYIPs refer to High Yield Investment Programs, online systems that take in investments and provide amazingly huge return of investments (ROIs) in a very short period of time.
All online HYIPs require participants to invest some money into the program. This money will be kept on hold for a particular period of time. Thereafter, the investor can make a withdrawal of his investment with high yielding profit.
It is not difficult to understand how HYIPs work. New members are recruited every minute. From the investments of these new members will be derived the profit that will accrue to older members. It is a self-cannibalizing cycle, one that feeds on the system itself.
Because HYIPs rely on the influx of new members, profit is often determined via a pyramid system where members can earn commissions per new member they manage to recruit. This system sometimes goes as deep as 3 tiers.
The Good
HYIPs are a very risky business, but this doesn’t mean that you can’t profit from them.
Profiting through HYIPs require promptness and a whole lot of luck. Once you have invested a sum of money on an HYIP, for example, you will have to withdraw it, together with the profit, as soon as you can. Don’t delay. Don’t be tempted to let it stay there because it is generating income over time. Withdraw your investment immediately.
Once you get your ROI back, don’t reinvest it. Instead, reinvest the profit it generated. This way, your capital will be safe, and the only cash you’ll stand to lose would be the income you got from the program.
The Bad And The Ugly
That HYIPs are fraudulent programs is almost a given, so much so that Wikipedia.com, the web’s premiere resource website, defines HYIP as a form of a scam.
A great majority of HYIPs close down eventually, leaving a lot of investors at a loss, wondering how to recoup their investments. Earning with HYIPs has become a game of milking it for what it can offer and praying that you’ll earn enough before it runs away with your money.
Here are the reasons why HYIPs are full of risks for the investor:
* HYIPs do not play with real assets. They may claim that they do use the investments for profitable ventures, but they don’t. They only rely on the money invested by new members.
* Most HYIPs do not reveal their contact information. If ever there is a physical address given, it is always located in a country that has no enforceable laws against online deceptions.
* Most payment processors flag HYIPs and ban transactions between such programs and its members.
The Verdict
As much as possible, stay away from HYIPs. There are other online earning opportunities you can pursue which are more credible, more stable and more trustworthy.
Some people, however, find the risky nature of HYIPs quite enticing. That HYIPs promise big profit really quick only adds to their tempting nature.
A few people who have succeeded with HYIPs will have but one advice: “invest only what you can afford to lose.” HYIPs are not the solution to your financial woes. You can earn from them, albeit, with a lot of prayers and a lot of luck, but do not expect them to be a long term online business model you can rely on.
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